1.1700: Euro hits three-month highs as US Bond buyback plan crushes the US Dollar
The Euro (EUR) extends gains against an ailing US Dollar (USD) on Thursday, as the US Treasury’s plan to boost buybacks of long-term Government Bonds sent the Greenback tumbling across the board.
On Thursday, the Euro (EUR) reached three-month highs against the US Dollar (USD) following the US Treasury's plan to double the size of buyback operations for longer-dated securities. This decision, announced by the US Treasury Department on Wednesday, aims to ease yields on long-term Government Bonds, which had been pressured due to the national debt surpassing $40 trillion.
Analysts at MUFG believe that this announcement, combined with the recent FIMA report comment from Japan, could be detrimental for the US Dollar, potentially leading to reduced appetite for US assets or exposure to the US dollar. The Euro, the second most heavily traded currency in the world, trades at over 1.1700 against the USD, marking a 1.13% increase from Wednesday's lows.
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